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Question
The reduction in deposit funds cost to an individual bank brought about by government insurance is an example of the
A. social benefit of regulation.
B. private cost of regulation to DIs.
C. private benefits of regulation to DIs.
D. net regulatory burden.
E. none of the above
Answer
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Related questions
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A macro hedge is a hedge of a particular asset or liability exposure to a change in a macroeconomic variable.
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Due to convexity problems, banks are actually better off using the simpler repricing model to manage interest rate risk rather than the duration model.
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The cash flow from the interest a bank receives on a long-term loan that is normally reinvested is called the runoff from the loan.
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If a bank has a negative repricing gap, falling interest rates increase profitability.
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Explain how liquidity risk can lead to insolvency risk.
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In the absence of deposit insurance, a deposit is a _______________ to the bank's assets.A. pro rata claimB. first come/first serve claimC. full pay or no pay claimD. both A and BE. both B and C
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A. Class A
B. Class B
C. Class C
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